The Master Power Purchase and Sale Agreement (MPPSA) is essential for establishing long-term power trading relationships in the UK energy market. It serves as a foundation document that streamlines multiple power purchase transactions under a single framework, reducing negotiation time and transaction costs. Used extensively in England and Wales, it incorporates market-specific provisions while maintaining flexibility for various power generation sources. The agreement is particularly vital for managing regulatory compliance, risk allocation, and establishing clear commercial terms between power generators and purchasers.
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1. Parties: Identification and details of the buyer and seller
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including regulatory references to Electricity Act 1989, Energy Act 2013, and other relevant legislation
4. Transaction Terms: Core commercial terms including pricing, quantity, and delivery specifications
5. Performance Obligations: Specific obligations of each party including compliance with regulatory requirements
6. Billing and Payment: Payment terms, invoicing, and settlement procedures
7. Default and Remedies: Events of default and available remedies under the agreement
8. Force Majeure: Circumstances excusing performance including regulatory changes
9. Term and Termination: Duration and termination provisions of the agreement
1. Credit Support: Financial security requirements and credit risk mitigation measures
2. Trading Parameters: Specific trading rules, limitations and compliance with market regulations
3. Green Certificates: Provisions for renewable energy certificates and environmental compliance
4. Regulatory Compliance: Specific provisions addressing compliance with OFGEM regulations and market codes
1. Schedule 1: Transaction Confirmation Form: Standard template for documenting individual power purchase transactions
2. Schedule 2: Pricing Methodology: Detailed pricing calculations, formulas and market reference prices
3. Schedule 3: Credit Support Requirements: Specific credit terms, calculations and security arrangements
4. Schedule 4: Notices: Contact details and communication procedures for both parties
5. Appendix A: Technical Specifications: Technical requirements and standards for power delivery
6. Appendix B: Measurement and Testing: Procedures for measuring and testing power delivery and quality
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